The interest of compound interest f: l The final value of continuous compound interest p: the principal t: the integer multiple of the acquisition time of the corresponding interest rate (year).

1, continuous compound interest related to t units, where: erc= 1+EAR.

EAR is the effective interest rate per unit time;

2. Continuous compound interest refers to the corresponding interest rate when the number of periods tends to infinity. At this time, the interval between different periods is very short, which can be considered as infinitesimal. Compound interest is compound interest, which means that the annual income can also generate income. Specifically, the whole loan period is divided into several sections, and the interest calculated according to the principal in the previous section is added to the principal to form an increased principal, which is used as the principal basis for calculating the interest in the next section until the interest in each section is calculated. After summarizing, the interest of the whole loan period is obtained. If the segments are infinite, each segment is infinitesimal, and the single-period interest rate tends to be infinitesimal, it is continuous compound interest, but it does not exist in reality. Commonly known as rolling, it is actually intermittent compound interest.

Present value is a very important concept, which embodies an important idea of finance-no matter how much you earn in the future, first convert it into effective currency at a certain interest rate-that is, purchasing power. As we all know, except for the small yen, most currencies are inflationary, and the future currency also implies the interest of the current currency. If you don't turn it into real purchasing power, you will overestimate the value of something. So the present value is more convincing than the living money. Compared with simple interest, compound interest can better reflect the financial management concept that interest is "the time value of money". When we sell a commodity with time value-currency, the interest generated by multiple carry-over periods should also be included in the principal of the next period, so as to truly reflect the time cost of currency-simple interest, a fixed amount of interest. In fact, with the depreciation of currency and the increase of opportunity cost, the actual income is decreasing.